Gerald Received a One-Third Capital and Profit (Loss) Interest in XYZ

question 43

Multiple Choice

Gerald received a one-third capital and profit (loss) interest in XYZ Limited Partnership (LP) . In exchange for this interest, Gerald contributed a building with a FMV of $30,000. His adjusted basis in the building was $15,000. In addition, the building was encumbered with a $9,000 nonrecourse mortgage that XYZ, LP assumed at the time the property was contributed. What is Gerald's outside basis immediately after his contribution?

• A) $21,000.
• B) $24,000.
• C) $6,000.
• D) $9,000.

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Definitions:

Cerebellum

A part of the brain located at the back of the skull that coordinates voluntary movements and maintains balance.

Postcentral Gyrus

The primary somatosensory cortex located in the parietal lobe of the brain, responsible for processing tactile and proprioceptive information.

Parietal Lobe

One of the four major lobes of the cerebral cortex in the brain, involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, involved in voluntary movement, language, and planning.